NACIA Washington Updates
July 23, 2009
 
With August recess a little over one week away in the House and two weeks away in the Senate, Congress is very busy with their efforts on health care reform and climate change. All the activity on these two major pieces of legislation, as well as the House Agriculture Committee’s involvement with food safety, has pushed focus off of the investigation into the crop insurance program, as well as the hearing on the recent GAO report.  
 
Reports on the crop insurance program are that a record of $8.6 billion was made in indemnity payments to farmers for the 2008 season.  The high level of losses was due to drought and flooding in many areas of the country, as well as significant price declines in some commodities. Many claims came later in the year – as is evidenced by the $6.54 billion level that the program had paid out by mid February. Some of the highest payment levels were in the following states:  Illinois ($569 million), Indiana ($524 million), Iowa ($1.1 billion), Kansas ($411 million), Minnesota ($691 million), Nebraska ($414 million), North Dakota ($842 million), Ohio ($522 million), South Dakota ($400 million), and Texas ($766 million).  
 
Food safety rumors keep flying regarding when the bill will be considered on the House Floor, but there is no schedule set yet. At the house Agriculture Committee hearing last week, many issues were raised regarding how the food safety legislation would affect farmers, and Chairman Peterson (D-MN) and other members of the House Agriculture Committee asserted that considerable changes would need to be made before it garnered their support. Chairman Peterson and others are in ongoing meetings with House Energy and Commerce Committee Chairman Waxman (D-CA), but the outcome of these meetings is not yet determined. In addition to the food safety activity, the House Agriculture Committee has been active on dairy issues. On Tuesday they held the second of a three-part hearing on the economic conditions facing the dairy industry. Part three is currently scheduled for July 28. If you would like to read about the hearings, please click here.

Chairman Waxman is also in ongoing meetings with a bloc of Blue Dogs and another Democrat who are currently opposed to his health care legislation. The House Education and Labor Committee and the Ways and Means Committee have both reported out their portions of the legislation, but the Energy and Commerce Committee has not. After several days of markup late last week and early this week, Chairman Waxman suspended the markup proceedings and currently is engaging in closed-door negotiations. There is intense pressure from Democratic House Leadership and President Obama to hold a vote on health care prior to the August recess, but reports are that timetable may be slipping.  

On the Senate side, Chairwoman Boxer (D-CA) and the Environment and Public Works Committee continues to hold hearings on climate change legislation.  Witnesses at one of the hearings this week testified with mixed opinions on the value that cap and trade would bring to rural areas. Ranking Member Inhofe (R-OK) is evidently of the opinion that cap and trade would not be good, and has been quoted as follows:  “cap-and-trade benefits the coasts at the expense of the heartland. Cap-and-trade divides rather than unites America.”

Health care on the Senate side continues to be dependent on the current negotiations between Finance Committee Chairman Baucus (D-MT) and other members of his Committee, including Republicans. Again, there is considerable pressure from the White House to complete the consideration of the legislation before the Senate leaves for Recess on August 7, but at a news conference today, Senate Majority Leader Reid (D-NV) announced the Senate would not vote on the health care legislation before the recess. As we mentioned previously, the Senate Health, Education, Labor, and Pensions (HELP) Committee already approved their health care legislation authored by Senators Kennedy (D-MA) and Dodd (D- CT), but on a party-line vote. Chairman Baucus seems more determined to come up with a bi-partisan work product, which will need to be joined with the HELP Committee bill before Senate Floor consideration.  

Other USDA activity includes weighing in on the climate change legislation debate, even more staff and state director announcements, and deployment of some Farm Bill funding.
 

• At a Senate Agriculture Committee hearing on climate change yesterday, Secretary Vilsack discussed a USDA study that asserted “the economic benefits to agriculture from the cap and trade legislation will likely outweigh the costs in the short term, and that the economic benefits from offsets markets will easily outpace increased input costs over the long term.” Details.
• This week USDA released three public service announcements encouraging farmers and ranchers to educate themselves on the ACRE program prior to the August 14 sign up deadline. Details.
• USDA continues to name state directors for FSA and Rural Development. If you do not yet know your state director, click here or here.
• Secretary Vilsack announced on Tuesday that USDA is now accepting applications for up to $50 million in projects to promote the continued production and use of biofuels. The source of the funding is the 2008 Farm Bill. Details.
• And last but not least, USDA is looking out for your safety:  “As the peak of the 2009 hurricane season approaches, USDA's Food Safety and Inspection Service (FSIS) is providing recommendations to minimize the potential for foodborne illnesses due to power outages and other problems often associated with severe weather.” Details.

If you have not yet paid your dues, please submit online through the secure NACIA website or print out the membership renewal form and mail in your check. As you can see from the record amounts of loss payments from the 2008 growing season, the crop insurance program is a vital part of the safety net supporting our nation’s farmers and ranchers. It is essential for the continued strength of the program and for the vitality of the agents that implement the program to ensure that NACIA is able to communicate to the decision makers in Washington. This can only be done through your continued support.  

As always, please contact us if you have any questions.  
Brent W. Gattis
NACIA Washington Representative